Deal signed with NTPC to conduct feasibility study

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FE Report
The government has assigned the Indian National Thermal Power Corporation (NTPC) to conduct feasibility study for setting up two coal-fired power plants having the total generation capacity of 2,640 megawatts (mw) in Khulna and Chittagong.
State-owned Power Development Board (PDB) and NTPC signed an agreement to this effect recently in PDB's headquarters in the city.
PDB Secretary Md Azizul Islam and NTPC Executive Director SN Goel signed the agreement on behalf of their respective sides.
Of the two plants the 1,320 mw coal-fired power plant in Khulna would be built jointly by the PDB and the NTPC, while the remaining 1,320 mw coal-fired power plant in Chittagong would be built as an independent power plant (IPP) through tender.
Each of the 1,320 mw coal-fired power plants would have two units having 660 mw generation capacities.
PDB Chairman ASM Alamgir Kabir and Chairman and Managing Director of the NTPC Arup Roy Chowdhury were present during signing of the agreement over the feasibility study.
The PDB would pay NTPC US$ 250,000 to carry out the feasibility study for setting up the coal-based power plants.
The PDB and the NTPC inked a memorandum of understanding (MoU) in early September in New Delhi to build the 1,320 mw coal-fired power plant in Khulna.
Both the companies have already agreed for establishing a joint venture company (JVC) to install the Khulna power plant.
During his recent visit in Dhaka the NTPC top brass discussed elaborately the formation of the JVC and its provisions, a senior PDB official said.
He said both the companies have agreed to constitute JVC Board with equal number of members from the two sides.
Two key posts of the JVC - chairman and managing director - would be changed with members of each side alternately.
In the proposed joint venture coal-fired power plant the PDB and NTPC would invest 25 per cent of the total costs amounting to around $ 425 million altogether, while the remaining 75 per cent would be met by loan from external sources.
Valuation of Bangladesh land would be calculated and treated as equity in the joint venture power plant project.
The JVC would be constituted shortly, said the PDB official.